the bidding competition for the innovation and by increasing the relative profitability of being the most efficient firm …We show that, in the case when innovations are for sale, increased product market competition, captured by reduced … stricter, but not too strict, merger and cartel policies tend to increase the incentive for innovations for sale by ensuring …

possible reconciliation. It is demonstrated that anticompetitive mergers may reduce competitors' share prices, if the merger …There is diverging empirical evidence on the competitive effects of horizontal mergers: consumer prices (and thus … presumably competitors' profits) often rise while competitors' share prices fall. Our model of endogenous mergers provides a …

reducing bidding competition, thereby also reducing acquisition prices and innovation incentives. …Why do so many high-priced acquisitions of entrepreneurial firms take place in network industries? We develop a theory … more important when there is an increase in network effects. A consequence is higher innovation incentives under an …

innovation. The dataset is complemented with indicators of patent quality (patent renewal, forward citations, and patent family …

effects on the sales price. Moreover, preemptive acquisitions by incumbents are shown to stimulate the process of creative … under bidding competition. …

reducing bidding competition, thereby also reducing acquisition prices and innovation incentives …Why do so many high-priced acquisitions of entrepreneurial firms take place in network industries? We develop a theory … more important when there is an increase in network effects. A consequence is higher innovation incentives under an …

The relationship between competition and innovation is difficult to disentangle, as exogenous variation in market …-induced innovation increase by the IG Farben successors, which then spilled over to the wider chemical industry. …